India, Ghana collaborate on payment system integration and trade boost

India, Ghana collaborate on UPI: India and Ghana are in talks to connect their payment systems—the Unified Payments Interface (UPI) and Ghana Interbank Payment and Settlement Systems (GHIPSS)—enabling users to conduct instant, cost-effective fund transfers reciprocally. Additionally, discussions have ensued regarding potential collaborations on digital transformation solutions, the local currency settlement system, and leveraging opportunities presented by the African Continental Free Trade Agreement (AfCFTA).

The Department of Commerce announced on social media platform X (formerly Twitter) that both nations aim to operationalise India's UPI on Ghana's GHIPSS within six months.

India's UPI has already expanded its reach to countries like Singapore and the UAE, with ongoing negotiations underway with Nigeria for a similar arrangement.

These deliberations took place during the visit of a seven-member Indian delegation, led by Additional Secretary in the Department of Commerce, Amardeep Singh Bhatia, to Accra, Ghana, on May 2–3.

NPCI International has recently partnered with the Bank of Namibia to assist in establishing a UPI-like real-time payment system in the African nation.

Bilateral trade between India and Ghana surged to $2.87 billion in 2022–23 from $2.6 billion in 2021–22. Ghana's trade surplus is primarily due to India's substantial gold imports, which account for nearly 80 percent of total imports from Ghana. In return, Ghana exports gold, cocoa, cashew nuts, and timber products to India while importing pharmaceuticals, agricultural machinery, transport vehicles, electrical equipment, and other goods.

(with PTI inputs)